Investing for 2019 Elections and beyond
The season for discussion about the likely impact of the 2019 elections on stock prices has commenced. For me, it all boils down to a simple question: If there is a change at the Centre, would any of the existing policies get rolled back in a way that would change the direction of economic growth? Stay focused on that and you will get your answers.
 
When the Bharatiya Janata Party...
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Nifty, Sensex May Continue to Rise – Weekly closing report

We had mentioned in last week’s closing report that Nifty, Sensex might try to rally. The major indices of the Indian stock markets were volatile during the week and closed on Friday with gains over last Friday’s close. The trends of the major indices in the course of the week’s trading are given in the table below:

 

 
The major indices of the Indian stock markets suffered a sharp correction on Monday and closed with losses over Friday’s close. On the NSE, there were 339 advances, 1,382 declines and 350 unchanged.
 
Negative global markets along with caution ahead of the results of Assembly elections in five states and a rise in crude oil prices suppressed the key Indian equities indices during Monday's trade session. The key indices—the S&P BSE Sensex and NSE Nifty50 - had a gap-down opening and subsequently shed over 655 points and 205 points each on an intra-day low basis. 
 
According to market observers, selling pressure in banking, consumer goods, oil and gas and capital goods stocks along with continuous outflow of foreign funds accelerated the downward trajectory of the equity indices. The BSE market breadth was bearish with 1,787 declines and 546 advances.
 
Lupin's Pithampur (Unit-3) facility received EIR from US FDA (Food and Drug Administration). This was a Pre-approval inspection for Albuterol Sulfate Inhalation product. Lupin's Pithampur (Unit 3) facility manufactures Dermatological Products, Dry Product Inhalers and Metered Dose Inhalers.
 
Escorts and Kubato Corporation, Japan, has entered into a global JV (joint venture) agreement with an initial investment of Rs300 crore for technology collaboration and joint manufacturing of high-end, value-oriented utility tractor range. This is to establish a new facility with initial capacity of 50,000 units.
Alembic Pharmaceuticals has received approval from the US FDA for its ANDA - Olopatadine Hydrochloride Ophthalmic Solution USP. The drug is indicated for the treatment of the signs and symptoms of allergic conjunctivitis.
 
Larsen & Toubro reported that its Power T&D business has won orders worth Rs2,547 crore. The orders are for 220kV Transmission line in Tanzania, 230kV Substation in Thailand, 132kV Substations and associated Transmission Lines in Jharkhand and 220kV & 132kV Transmission lines were West Bengal.
 
The major indices of the Indian stock markets fell sharply in the morning and made a dramatic rally on Tuesday and closed with gains over Monday’s close. On the NSE, there were 1,249 advances, 454 declines and 356 unchanged.
 
The market had lost significantly during the morning trade session on the sudden resignation by RBI Governor Urjit Patel and early election trends which showed BJP losing in Rajasthan and Chattisgarh state elections and trailing Congress in Madhya Pradesh.
 
Software major Tech Mahindra on Tuesday announced key leadership appointments in India to accelerate its digital transformation. 
 
TCS and Singapore Airlines have launched a co-developed solution for Airline industry to digitally transform ground operations. TCS's Intelligent Airline Operations (IAO) solution would help Airlines improve Operational efficiency and enrich customer experience.
 
Cadila Healthcare reported that Liva Pharmaceuticals, its subsidiary, has received the approval from the USFDA (Food and Drug Administration) for its supplemental ANDA - Ranitidine Injection USP. It is used to treat stomach and duodenal (intestinal) ulcers, and prevent them from recurring.
 
Dr.Reddy's Laboratories launched the OTC (over the counter) store brand equivalent of Prilosec OTC® - Omeprazole Delayed-Release Tablets in US. It is a proton pump inhibitor used to treat frequent heartburn occurring two or more days per week in adults.
 
The major indices of the Indian stock markets rallied on Wednesday and closed with gain over Tuesday’s close. On the NSE, there were 1,418 advances, 317 declines and 328 unchanged.
 
The key equity indices rose over 1.75% during trading on Wednesday, led by gains in financials and auto stocks. According to analysts, the markets ignored the sudden resignation of Urjit Patel, perhaps because it might lead to a more liberal monetary policy with the appointment of Shaktikanta Das as the new Reserve Bank of India Governor. All the sectors on the BSE, except the energy stocks, traded in the green. Also key sectors finance and banking outperformed the benchmark index.
 
Positive Asian markets have contributed to today’s gains in the domestic market, pointed out market analysts. 
 
The state government elections’ results have given new energy to the bulls in the domestic stock markets. However, there is a last word of caution from analysts on Lok Sabha 2019 election results - a possible hung Parliament in 2019 will be a concern to the market and make it bearish.
 
Ramco Systems has secured another deal from a leading adversary air (ADAIR) services provider to the U.S. Defense Forces, to manage its fleet of fighter aircraft used for highly complex training fleet and Defense contract requirements.
 
NBCC India has received a LoA (Letter of Assurance) of work from Ministry of Skill Development and Entrepreneurship, Government of India for construction of office building at New Delhi. The estimated cost of project is approximately Rs172 crore.
 
Aurobindo Pharma's subsidiary Helix Healthcare, Netherlands, has entered into a JV (joint venture) agreement with Shandong Luoxin Pharma, China to setup facilities to manufacture nebuliser inhaler and other products for China, US and EU markets. Helix is likely to invest $15 Mn and Luoxin will invest $35 Mn.
 
The major indices of the Indian stock markets made a small rally on Thursday and closed with gains over Wednesday’s close. On the NSE, there were 1,017 advances, 671 declines and 374 unchanged.
 
The market was supported by buying in banking stocks. Sentiments were upbeat as the newly appointed Reserve Bank Governor Shaktikanta Das held a meeting with heads of Mumbai-based public sector banks. The Nifty PSU Bank index gained 1.66%. Banking stocks also rose as RBI is scheduled to purchase government securities and infuse liquidity worth Rs10,000 crore on Thursday. All the sectoral indices on BSE and NSE were in the green.  With inflation cooling off, it will give way to interest rate cut. An interest rate cut which will lead to higher lending can be expected, pointed out market analysts.
 
Steel Strips Wheels has bagged an order for 90,000 truck steel wheels for Truck & Trailer Aftermarket in USA to be delivered in four months. The total revenue generated from this order would be over US$ 4 million.
 
Ashoka Buildcon emerged as the Lowest Bidder for the Project of Rural Electrification Works of Package-4 in Jharkhand under Jharkhand Sampurna Bijli Achchhadan Yojana (JSBAY) Phase-II. The Bid value of the project is Rs214.21 crore with a completion period of 18 months.
 
Sequent Scientific reported that SeQuent Research Limited, a 100% subsidiary of the company has received Establishment Inspection Report (EIR) from USFDA (Food and Drug Administration) for its GLP compliant, Analytical and bio analytical services laboratory at Mangalore.
 
The Sensex and Nifty on Friday opened with slight gains and traded completely flat thoughout the day. The financial stocks witnessed selling pressure while telecom, IT (information technology) and realty counters gained. Reserve Bank of India's (RBI) board meeting and the release of key macro-economic data were due on Friday. 
 
State-owned Indian Oil Corp announced a buyback of 3.06% equity shares at a price of Rs149 per stock for a consideration not exceeding Rs4,435 crore. The buyback decision was taken by the company's Board in its meeting held on Thursday. "Buyback of equity shares of the company not exceeding 29,76,51,006 equity shares being approximately 3.06% of the total paid up equity share capital of the company at a price of Rs149 per equity share payable in cash for an aggregate consideration not exceeding Rs4,435 crore...," the company said in a regulatory filing. "The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the Buyback Regulations." 
 
In another development, the company's Board declared an interim dividend of 67.5%"i.e. Rs6.75 per equity share of face value of Rs10 each for the financial year 2018-19". "The dividend will be credited to the account of the shareholders or the dividend warrant in respect thereof will be dispatched on or before 31st December 2018," the filing said. Indian Oil Corporation shares closed at Rs141.30, up 2.84% on the NSE.
 
Global software major Infosys said it has formed a joint venture (JV) with Hitachi Ltd, Panasonic Corp and Pasona Inc to enhance its presence in Japan. "The company will acquire 81% equity stake in Hitachi's subsidiary -- Hitachi Procurement Service Co Ltd, in which Panasonic and Pasona will be minority shareholders," said the city-based IT (information technology) major in a statement here. In a regulatory filing on the BSE, the company said its Singapore-based Infosys Consulting Pte Ltd subsidiary entered into an agreement with the three to buy the majority stake (81%) in all-cash deal for $24 million (Rs175 crore) on or before April 1, 2019. 
 
"Hitachi will transfer 2% each to Panasonic and Pasona and hold the remaining 15%," said the filing. The Tokyo-based JV will help clients navigate their digital journey and accelerate business process transformation by leveraging digital procurement platforms. Infosys shares closed at Rs706.15, up 1.20% on the NSE.

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Nifty, Sensex Still on an Uptrend – Thursday closing report

We had mentioned in Wednesday’s closing report that Nifty, Sensex were headed higher. The major indices of the Indian stock markets made a small rally on Thursday and closed with gains over Wednesday’s close. On the NSE, there were 1,017 advances, 671 declines and 374 unchanged. The trends of the major indices in the course of Thursday’s trading are given in the table below:

 

 
The market was supported by buying in banking stocks. Sentiments were upbeat as the newly appointed Reserve Bank Governor Shaktikanta Das held a meeting with heads of Mumbai-based public sector banks. The Nifty PSU Bank index gained 1.66%. Banking stocks also rose as RBI is scheduled to purchase government securities and infuse liquidity worth Rs10,000 crore on Thursday. All the sectoral indices on BSE and NSE were in the green.  With inflation cooling off, it will give way to interest rate cut. An interest rate cut which will lead to higher lending can be expected, pointed out market analysts. 
 
UK Prime Minister Theresa May won by a large margin a confidence vote by her fellow Conservative members of parliament. The prime minister won the secret vote, which started at 1800 GMT and ended two hours later, with 200 out of 317 Tory MPs supporting her to stay on as the party leader. 
 
Lower food prices eased India's November retail inflation rate to 2.33% from 3.38% in the previous month, while higher manufacturing boosted industrial output growth in October to 8.1%, an official data showed on Wednesday, even as India Inc. welcomed the double bonanza for the economy. On a year-on-year (YoY) basis, the Consumer Price Index (CPI), or retail inflation, fall was even sharper as compared to 4.88% registered in November 2017. 
 
Higher production in the manufacturing sector, especially of capital goods and consumer durables, accelerated the growth of India's industrial output to 8.1% in October from a rise of 4.46% in September and 1.8% during the corresponding period of the previous fiscal, official data showed. 
 
Steel Strips Wheels has bagged an order for 90,000 truck steel wheels for Truck & Trailer Aftermarket in USA to be delivered in four months. The total revenue generated from this order would be over US$ 4 million. The company’s shares closed at Rs965.50, down 1.30% on the BSE.
 
Ashoka Buildcon emerged as the Lowest Bidder for the Project of Rural Electrification Works of Package-4 in Jharkhand under Jharkhand Sampurna Bijli Achchhadan Yojana (JSBAY) Phase-II. The Bid value of the project is Rs214.21 crore with a completion period of 18 months. The company’s shares closed at Rs131.00, up 0.46% on the BSE.
 
Sequent Scientific reported that SeQuent Research Limited, a 100% subsidiary of the company has received Establishment Inspection Report (EIR) from USFDA (Food and Drug Administration) for its GLP compliant, Analytical and bio analytical services laboratory at Mangalore. The company’s shares closed at Rs70.60, down 0.77% on the BSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

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